THE beleaguered banking sector will be back in the spotlight this week when RBS and HSBC face more questions about their recent difficulties.
The potential cost of the humiliating IT meltdown that left thousands of RBS customers without access to cash will be looked for when the part-nationalised bank reports half-year figures on Friday.
The bank has promised affected customers a compensation deal, pledging that those from other banks will also be repaid knock-on costs after they were left out of pocket by a computer failure that caused chaos.
The market will be keen for an idea of the financial implication of the debacle, which came amid a difficult six months for the group.
RBS is among a number of banks globally that have reportedly been implicated in the rate-rigging scandal that cost rival Barclays £290m in settlement costs, the loss of its chief executive Bob Diamond and a reputational battering.
Chief executive Stephen Hester has also come under pressure since the IT crisis and said he would forgo his 2012 bonus worth up to £2.m in an attempt to calm anger.
Results from part-nationalised RBS are also expected to show a further hit from mis-selling payment protection insurance (PPI) after rival Lloyds Banking Group revealed more PPI pain in its half-year report.
RBS, 82% owned by the taxpayer, revealed a further £125m PPI charge alongside first-quarter figures in May, taking its current outlay to £1.2bn.
HSBC’s involvement in the scandals that have rocked the banking industry may leave its mark on the company’s half-year results today.
Britain’s biggest bank by market value survived the financial crisis with its reputation largely intact but it was dragged through the mud earlier this month by revelations that it inadvertently dealt with terrorist financiers, money launderers and drug cartels.
Tomorrow energy giant BP is expected to show the impact of falling oil prices and lower output when it reports interim figures.
Experts predict the group will report an 18% drop in underlying replacement cost profits in the first half of the year, at £5.9bn. This comes after an expected 23% plunge in the second quarter, with analysts pencilling in underlying profits of £2.8bn.